FAQs
Industry Analysis:
- How does your company fit into the industry?
- How did you calculate the size of your market and its growth rate?
- What are the major obstacles to your success?
- What are the barriers to entry?
- What is the profile of your end user?
- What advantages do your competitors have?
What are 5 questions you should ask when investing? ›
5 questions to ask before you invest
- Am I comfortable with the level of risk? Can I afford to lose my money? ...
- Do I understand the investment and could I get my money out easily? ...
- Are my investments regulated? ...
- Am I protected if the investment provider or my adviser goes out of business? ...
- Should I get financial advice?
What questions are likely to be asked by investors reading your business plan? ›
5 Questions Your Business Plan Needs to Answer to Get You Funding
- What are your projected revenues, expenses, and profits? ...
- How much funding do you need? ...
- What will the funding be used for? ...
- What has your business achieved so far? ...
- What is your long-term exit strategy?
Why do investors ask questions? ›
Key summary. Investors want to understand how the company operates under the bonnet and ensure there is sensible business structure beyond the founder(s) they've been speaking to during the fundraising process.
What an investor wants to hear? ›
So they're going to want to know exactly why you need the cash and exactly what you plan to do with it. They'll also want to know when they can expect a return; that should be a part of your business plan. Investors will also be looking for an exit strategy, and you need to think about that in advance.
What questions do angel investors ask? ›
7 Questions Angel Investors and Venture Capitalists Will Ask
- What is your business about? ...
- What is the barrier to entry for your competitors? ...
- What will stop major monster companies in your arena from copying you? ...
- Why are you raising the funds you want to raise? ...
- How far will the funds get you?
What are the 4 C's of investing? ›
To help with this conversation, I like to frame fund expenses in terms of what I call the Four C's of Investment Costs: Capacity, Craftsmanship, Complexity, and Contribution.
What are good investor relations questions? ›
General questions
- Why are you leaving your current company?
- Tell me about yourself .
- How long do you plan to stay with this company?
- What are you looking for in a new position?
- How would your boss and coworkers describe you?
- What are your career goals and what steps do you plan to take to achieve them?
What is the 5 rule of investing? ›
This sort of five percent rule is a yardstick to help investors with diversification and risk management. Using this strategy, no more than 1/20th of an investor's portfolio would be tied to any single security. This protects against material losses should that single company perform poorly or become insolvent.
What are the four basic business questions? ›
These four key questions can help determine whether starting your own business is right for you.
- What problem does my potential business solve? ...
- Do I have the right team in place? ...
- How much capital do I need in order to get started? ...
- What are the risks and potential rewards?
The Financial Ask & Answer
How you intend to use the money should also be clear and logical. Investors need to know that you'll spend their money responsibly and that there's proof that how you spend the money will result in revenue growth. Every dollar should be allocated to a specific destination for a good reason.
What do investors seek? ›
Investors typically look at a startup's market reach, both the current market reach and the potential for future opportunities. Therefore, startups must demonstrate that their markets are already engaging with their products or services and are providing feedback that the team uses to drive improvement.
What not to tell investors? ›
So here are 9 things not to do when talking to investors.
- Talk About Exits. ...
- Be Oblivious and Don't Listen. ...
- Ask for an NDA. ...
- Say: “I have no competitors.”
What questions should I ask an investor? ›
14 essential questions to ask investors
- What is their expected level of involvement? ...
- What value do they bring beyond capital? ...
- What is the typical check size of their investments? ...
- Would they lead a round of investment? ...
- What is their investment timeline and exit strategy preferences?
What does a VC want to hear? ›
VCs will want to know what milestones — particularly those related to growth and revenue — you will hit and when. If your startup has no immediate plan for revenue, say, because product development will take time, you should be ready to list other benchmarks you will achieve in lieu of revenue.
How do you prepare for an investor meeting? ›
5 Top Tips to Prepare for an Investor Meeting
- Know Your Investor. ...
- Craft a Powerful Pitch for Upcoming Events. ...
- Compile Essential Financial Documents. ...
- Showcase Your Value Proposition. ...
- Prove Business Scalability and Growth Potential in Presentations Events.
How do you prepare for an investor interview? ›
As with an interview for any job, make sure you do plenty of research about the company before you go. See what they have done well in the last few years, along with focusing on the parts that they could improve on. Make sure you're aware of what their portfolio consists of and what kind of investments they focus on.
What is an investor questionnaire? ›
The Investor Questionnaire suggests an asset allocation based on information you enter about your investment objectives and experience, time horizon, risk tolerance, and financial situation. Your asset allocation is how your portfolio is divided among stocks, bonds, and short-term reserves.
What does an investor ask for in return? ›
What to Offer Investors in Return? Most investors expect to receive a stake in your business in exchange for their funding. Venture capitalists might be willing to take on greater risk, such as requiring 40% of the company if the product is still in development.